The debt settlement agency then tries to make a deal with each creditor or debt collector to accept as a lump sum less than the whole balance of the debt. HOW DOES DEBT SETTLEMENT WORK?ĭebt settlement works by having the borrower stop paying all of his or her debts and pay some money to a debt settlement agency instead every month. They are also usually nationwide companies, not local to Minnesota and so they can’t appear in Minnesota courts. This is because only lawyers can defend people in court and most of the employees at debt settlement agencies are not lawyers. Once the debt collector has a court date, then the debt consolidation agency will usually not defend you in court. This means that even though you may have hired a company like Lexington Law Firm or Freedom Debt Relief to stop debts from getting out of control, a debt collector can still sue you. They promise to fix debt problems, but they often can’t do it quickly enough to stop a lawsuit against you. In Minnesota, debt settlement or debt consolidation agencies are not usually lawyers. The short answer is YES, you can be sued even if you have a debt settlement or debt consolidation agency working for you. Brooklyn Park Bankruptcy Attorneys Office + ExpandĬan I Be Sued While Working With A Debt Settlement Agency?.Blaine Bankruptcy Attorneys Office + Expand.St Paul Bankrutptcy Attorneys Office + Expand.Minneapolis Bankruptcy Attorneys Office + Expand.Modification to Bankruptcy Plan + Expand.Qualifying for Chapter 7 Bankruptcy + Expand.

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